One Central – Offices No. 4 Dubai | Office: +971 45686046
ITQAN is a company that specializes in business setup and business growth

How to set up a company in Dubai Free Zone

١٤ يونيو How to set up a company in Dubai Free Zone

How to set up a company in Dubai Free Zone? Dubai is an ideal destination for setting up companies thanks to its strategic location and growing economy. Among the most attractive options for investors are the free zones, which offer many advantages including full foreign ownership, tax exemptions, and easy legal procedures. How to set up a company in Dubai Free Zone provides an advanced and flexible business environment that contributes to accelerating the growth of companies and expanding their activities in the local and international market. By following clear steps starting from determining the type of business activity to obtaining a commercial license, investors can benefit from the advanced infrastructure and facilitated government services to achieve tangible successes in their various fields.

How

How to set up a company in Dubai Free Zone

Establishing a company in a Dubai free zone is an attractive option for foreign investors, as free zones offer several benefits, including 100% foreign ownership, tax exemptions, and ease of procedures. Here are the basic steps to establish a company in one of Dubai’s free zones:

  1. Choosing a business: The first step is to determine the type of business you want to do, whether it is commercial, industrial, or service.
  2. Choosing the right free zone: Dubai has many free zones, each specializing in specific sectors. You need to choose the free zone that matches your business activity.
  3. Determine the legal form of the company: You can choose between establishing a limited liability company (LLC), a branch of a foreign company, or a representative office, depending on your needs.
  4. Submitting the registration application: After determining the activity, area and legal form, the registration application must be submitted to the selected free zone authority, along with the required documents such as passports and a business plan.
  5. Obtaining approvals: After submitting the application, you will need to obtain the necessary approvals from the relevant authorities, which may include special approvals depending on the business activity.
  6. Renting an office or workspace: Most free zones provide multiple options for renting offices or warehouses depending on the company’s needs.
  7. Obtaining a commercial license: After completing all requirements and approvals, you will obtain a commercial license that authorizes you to practice the activity.
  8. Opening a bank account: After the license is issued, you can open a bank account for the company to manage your financial operations.

By establishing your company in the free zone, you can take advantage of Dubai’s thriving economic environment and advanced infrastructure to expand your business.

Advantages of establishing a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone offers many advantages that make it an ideal choice for investors and businessmen. The most prominent of these advantages are:

  1. Full Foreign Ownership: Free zones allow full ownership of companies by foreign investors without the need for a local partner.
  2. Tax Exemptions: Companies registered in free zones benefit from significant tax exemptions, including no personal income tax or corporate tax for periods of up to 50 years, renewable.
  3. Freedom to transfer funds: Companies can fully transfer capital and profits without any restrictions on remittances abroad.
  4. Customs exemptions: Companies in free zones benefit from a complete exemption from customs duties on imports and exports.
  5. Flexibility in hiring: Companies in the free zones can easily hire foreign workers according to their own needs without being bound by the traditional hiring limits of local companies.
  6. Ease of establishment: The procedures for establishing companies in the free zones are relatively quick and simple, as there are electronic government services that facilitate investors to complete all transactions efficiently.
  7. Advanced infrastructure: Dubai offers a distinguished business environment, including advanced ports, international airports, and an advanced road network, in addition to modern communications and energy services.
  8. Strategic Locations: Dubai’s free zones are strategically located close to ports and airports, facilitating international trade and contributing to the speedy delivery of goods.
  9. Administrative and legal facilities: Free zones provide full administrative support to companies, including facilities in issuing licenses and obtaining visas. Through these advantages, Dubai free zones are an attractive environment for companies aspiring to grow and expand into global markets.

Cost Factors of Setting Up a Company in Dubai Free Zone

The cost of establishing a company in the Dubai Free Zone varies based on several factors that affect the total amount required to establish the company. Here are the most important factors that determine the cost:

  1. Type of business: The business you choose will affect the costs associated with setting up the company, with fees varying depending on whether the company operates in a commercial, industrial, or service sector.
  2. Selected Free Zone: Registration fees and rentals vary between free zones in Dubai. Some free zones may be more expensive due to their location or the specialization they offer, such as proximity to ports or airports.
  3. Type of company: Whether you are forming a limited liability company (LLC) or a branch of a foreign company, the type of company affects costs. LLCs may require more complex legal and administrative procedures than branches of foreign companies.
  4. Office or Industrial Space: Office or warehouse rent in the free zone is a major factor affecting the cost. The larger the space or the strategic location within the free zone, the higher the costs.
  5. Number of Visas: The number of visas required for employees directly affects the cost. Free zones allow each company a specific number of visas, and you can obtain additional visas for a fee.
  6. Registration and Licensing Fees: The fees for registering a company and obtaining a trade license vary depending on the type of activity and the free zone. Some zones charge an annual fee for the trade license.
  7. Hiring professional services: Hiring legal advisors or companies that specialize in company formation may increase the cost, but it facilitates the process and ensures compliance with local laws.
  8. Insurance and Guarantees: Some businesses may require insurance or financial guarantees such as employee or property insurance, which increases overall costs. It is important to accurately determine your business needs to properly estimate the cost and choose the appropriate options that fit your budget.

How

How long does it take to set up a company in Dubai Free Zone?

Establishing a company in the Dubai Free Zone is a quick procedure compared to many other countries, thanks to the advanced electronic system and the facilities provided by the competent authorities. Establishing a company usually takes between 5 to 10 working days, and the time may vary depending on several factors, including:

  1. Type of business: Some businesses may require special approvals from certain regulatory bodies, which may delay the registration process.
  2. Complete Documents: If all required documents are complete and correct from the beginning, the process will go faster. Any missing documents may result in delays.
  3. Choosing a free zone: Some free zones have faster procedures than others, and provide integrated electronic systems for faster company registration.
  4. Number of approvals required: Some activities require additional approvals from certain government or regulatory bodies, which may extend the time required.
  5. Legal Issues: If legal review or advice regarding property or contracts is required, this may require additional time.

In general, if all requirements are met, the company formation procedures can be completed in a short period, giving investors the speed to start their business.

In conclusion, setting up a company in Dubai’s free zone is a strategic choice for investors looking to benefit from the dynamic business environment and advanced infrastructure. With facilities such as 100% foreign ownership, tax exemptions, and freedom to repatriate profits, Dubai is a global magnet for aspiring businesses. With smooth and flexible procedures, entrepreneurs can quickly set up their companies and start achieving their business goals in one of the world’s most important economic markets. Investing in Dubai’s free zones is not only an opportunity for growth, but a gateway to global expansion.

Frequently Asked Questions About Setting Up a Company in Dubai Free Zone

Can I have full ownership of the company as a foreigner in the free zone?

Yes, you can have 100% ownership without the need for a local partner.

What are the free zones in Dubai?

Dubai has several free zones, such as Jebel Ali Free Zone (JAFZA), Dubai Internet City, Dubai Airport Free Zone (DAFZ), and others, and each zone specializes in specific sectors.

What are the costs associated with setting up a company in the free zone?

Costs vary depending on the type of activity, location, and number of visas required, and include licensing fees, office rent, and registration fees.